Yen should strengthen 20% to around 130 per dollar, Tatsuo Yamasaki says

As USD/JPY trades near 162, Tatsuo Yamasaki says the yen remains well below fair value, while other market watchers warn the pair could climb toward 200 if Bank of Japan normalization lags.

Summary

The yen should strengthen by as much as 20% to around 130 per U.S. dollar, former Japanese vice finance minister for international affairs Tatsuo Yamasaki said as USD/JPY returned near 162 on July 6, arguing that level better reflects Japan's fundamentals. Yamasaki also said intervention remains possible as early as mid-July, underscoring the risk that Japanese authorities could step into the market if one-sided yen weakness persists. At the same time, Monex Group's Jesper Koll and Blue Edge Advisors' Calvin Yeoh said USD/JPY could reach 200 or higher if the Bank of Japan falls behind on policy normalization, highlighting the widening debate over how far yen weakness could run before officials act.

Terms & Concepts
  • USD/JPY: The exchange rate showing how many yen are needed to buy one U.S. dollar.
  • policy normalization: A central bank's shift away from ultra-loose settings toward more typical interest-rate and monetary policy conditions.
  • intervention: Official action in currency markets aimed at influencing an exchange rate.